LSEQ

1. Summary

• LSEQ is an actively managed, quantitative long/short ETF in U.S. large and mid caps. A macroeconomic "regime" model sets gross and net exposure and factor weights. Separate long and short stock models pick names. Disciplined Alpha LLC runs it as subadviser to Harbor Capital Advisors.
• It is a net-long fund, not market neutral. The stated normal net exposure is 40% to 60% long, and up to 150% long at times. On September 30, 2026 the fact sheet's market cap table adds to about 119.8% long and 64.5% short: about 1.84x gross and 55.3% net (my arithmetic).
• It shorts stock directly. It borrows shares through "prime brokerage arrangements" and pays interest and short dividends, which ran 1.08% of average net assets in fiscal 2025 on top of a 1.20% unitary fee. The prime broker is not named and the margin type is not stated.
• Most relevant for us: the SAI expressly exempts LSEQ from the trust-wide ban on buying securities on margin. That is a clean drafting precedent for a 40 Act ETF that both shorts and borrows from its broker. But at about 1.84x gross it stays under the Reg T ceiling, so it shows nothing about reaching 3.0x.

2. Key facts

Other facts:

• Diversification. LSEQ is not on the SAI's list of non-diversified funds, so it is a diversified fund (my inference) (LSEQ-SAI, page 7, "Additional Policies and Investment Techniques").
• Shareholder concentration. As of January 31, 2026, Vanguard Marketing Corporation held 51% and Hightower Advisors, LLC held 32% of shares of record (LSEQ-SAI, pages 120 and 122, "Share Ownership").

3. Service providers

4. Strategy

• Objective and benchmark. "The Fund seeks long-term growth of capital." (LSEQ-PR, page 95, "Investment Objective"). The fact sheet benchmark is the HFRX Equity Hedge Index (LSEQ-FS, page 1, "Key Facts"). The prospectus uses the S&P 500 as the broad market index and the HFRX Equity Hedge Index as "the appropriate benchmark index for the Fund for performance comparison purposes" (LSEQ-PR, page 99, "Average Annual Total Returns"). The fact sheet adds that the strategy aims "to limit downside risk relative to its benchmark" (LSEQ-FS, page 1, "Investment Philosophy").
• Universe.
  • At least 80% of net assets, plus borrowings for investment purposes, in long and short positions in equity securities (LSEQ-PR, page 95, "Principal Investment Strategy").
  • Mainly common stocks of U.S.-listed large and mid caps, defined as the Russell 1000 range. That range was "$1.03 billion to $4.53 trillion" at December 31, 2025 (LSEQ-PR, page 95).
  • Up to 15% of total assets in U.S.-listed foreign issuers (LSEQ-PR, page 95).
  • The model starts with the Russell 1000 and narrows to "industry groups exhibiting the highest dispersion in returns over time" (LSEQ-PR, page 96, "Principal Investment Strategy").
  • Wording conflict: the fact sheet says the 80% test applies to "U.S.-listed large-cap and mid-cap equity securities" (LSEQ-FS, page 1, "Investment Philosophy"). The prospectus applies it to long and short equity positions with no size limit in that sentence (LSEQ-PR, page 95).
  • The fact sheet shows 2.87% of the long book in companies of $0 to $1.0 billion, below the prospectus's stated range floor (LSEQ-FS, page 1, "Market Capitalization"). The range is "expected to change frequently" (LSEQ-PR, page 95), so this may not be a breach (my inference).
• How it picks stocks. Quantitative, with fundamental inputs. The subadviser "utilizes a disciplined quantitative process" (LSEQ-PR, page 95). Four parts (LSEQ-PR, pages 95 and 96, "Principal Investment Strategy"):
  • A "proprietary macroeconomic regime model" picks one of three regimes (value, neutral, momentum) from data on banks, employment, housing, industrial production and markets. It sets "the gross and net exposure as well as value, neutral, or momentum factor weights".
  • A focus on the industry groups with the most "alpha opportunities".
  • A long model: a multifactor model (valuation, quality, profitability, momentum) with factors drawn from "conversations with company management and third-party fundamental analysts", specific to each industry group.
  • "A separate short model for the short side of the Fund's portfolio."
• Neutrality targets. None. No beta, dollar or sector neutrality target is stated. The fund holds longs and shorts "to seek to neutralize downside tail risk" as measured by the Sortino ratio (LSEQ-PR, page 96). The Sortino ratio is a return-per-risk measure that counts only downside volatility.
• Net exposure. "Under normal circumstances, the Fund will generally have net exposure ranging from 40% to 60% long but the Fund's net exposure at times may be up to 150% long." Net is "percentage long holdings (including leverage) less the percentage of its short holdings." (LSEQ-PR, page 95, "Principal Investment Strategy").
• Limits on position size. No numeric per-position limit is stated.
  • Fundamental policy treats more than 25% of total assets "in any one industry or group of industries" as concentration (LSEQ-SAI, page 52, "Investment Restrictions").
  • The industry focus is "limited to the Fund's fundamental policy not to concentrate in a particular industry" (LSEQ-PR, page 96).
  • The fund is diversified (see section 2).
  • On September 30, 2026 the largest positions were 10x Genomics at 3.0% long and Space Exploration Technologies at -3.5% short. The top 10 longs totaled 24.4% and the top 10 shorts -21.3% (LSEQ-FS, page 1, "Top 10 Holdings").
• Sell discipline. Sells on a price target, a negative change in fundamentals, or a better opportunity (LSEQ-PR, page 96).

5. Exposure and leverage

• Measured exposure, September 30, 2026 (LSEQ-FS, page 1, "Market Capitalization"):

• Gross: 184.28%, or 1.84x. Net: 55.34% long (my arithmetic).
• The sector table gives a close cross-check: 119.4% long and 64.1% short (my arithmetic, LSEQ-FS, page 2, "Top 10 Economic Sector Allocation").
• The fact sheet doesn't say what base these percentages use. The long side sums above 100%, so they are likely percent of net assets (my inference).
• Stated targets or limits.
  • Net: 40% to 60% long normally, up to 150% long at times (LSEQ-PR, page 95).
  • Gross: no numeric target or cap. The regime model "is utilized to determine the gross and net exposure" (LSEQ-PR, page 95).
  • The measured 55.3% net sits inside the stated normal range (my inference).
• How it gets long exposure above 100%.
  • The documents don't say directly.
  • The prospectus allows leverage "for investment purposes, including through the use of reverse repurchase agreements and borrowings from a line of credit" (LSEQ-PR, page 95). That is permission, not stated use.
  • The fee table names only "Dividends and Interest on Short Sales", and says interest "result[s] from the Fund's use of prime brokerage arrangements to execute short sales" (LSEQ-PR, page 95, footnote 2). No separate line-of-credit or reverse repo cost appears.
  • So the extra 19.8% of longs is most likely funded by short sale proceeds or a broker debit balance in the prime brokerage account (my inference).
• Borrowing limits.
  • Bank borrowing is allowed only if total assets are "at least 300% of the principal amount of all of the Fund's borrowings" (LSEQ-SAI, page 52, "Investment Restrictions").
  • Conflict: the SAI's general borrowing text says "Borrowing is permitted for temporary administrative or emergency purposes" (LSEQ-SAI, page 44, "Borrowing"). The prospectus says LSEQ may borrow from a line of credit for investment purposes (LSEQ-PR, page 95). The SAI text is trust-wide boilerplate; the prospectus is fund-specific.
  • No line of credit is named.

6. Shorting, financing and collateral

• How it shorts. Direct short sales only. "When the Fund shorts securities of a company, it borrows shares of that company which it then sells." (LSEQ-PR, page 96, "Principal Investment Strategy"). "Harbor Alpha Layering ETF and Harbor Long-Short Equity ETF principally invest in short sales." (LSEQ-PR, page 154, "Short Sales"). No split between methods is given, because no other short method is described.
• Who lends the stock and who holds collateral.
  • Lender: a prime broker, not named (LSEQ-PR, page 95, footnote 2).
  • The fund "will often borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale" (LSEQ-PR, page 154, "Short Sales").
  • The fund "may pay a fee to borrow securities or maintain an arrangement with a broker to borrow securities" (LSEQ-PR, page 154).
• Margin.
  • The trust-wide non-fundamental restrictions bar buying securities on margin, "(except in the case of Harbor Long-Short Equity ETF)". The same exception applies to the ban on short sales (LSEQ-SAI, page 52, "Non-Fundamental Investment Restrictions"). So LSEQ alone in the trust is cleared to use a margin account (my inference).
  • No document says Reg T, Regulation T or portfolio margin.
• What is posted as collateral. Not stated. The documents don't say whether cash, Treasuries or long stocks are pledged to the broker.
• Short sale proceeds used to buy longs. Not stated directly. Long exposure of about 119.8% suggests it (my inference; see section 5).
• Segregated or tri-party account. Not stated. No search hit for segregated, pledge, earmark, tri-party or Rule 17f-1 tied to LSEQ. Where the longs financed at the broker are held, and whether any fund assets sit with the prime broker rather than State Street, is not stated.
• Securities lending.
  • Permitted. Loans "would not exceed 33⅓% of the value of the total assets of the Fund" (LSEQ-SAI, page 47, "Securities Lending").
  • The SAI table of fiscal 2025 lending income lists another Harbor fund, not LSEQ (LSEQ-SAI, page 101, "Securities Lending"). So LSEQ likely did not lend in fiscal 2025 (my inference).
• Permitted only (not stated as used).
  • Reverse repurchase agreements and line-of-credit borrowing for leverage (LSEQ-PR, page 95).
  • Listed and OTC options, U.S. Treasury bills, commodities and other derivatives (LSEQ-PR, page 95).
  • The Commodity Risk text says LSEQ "has exposure to commodities through investments in commodity-linked derivative instruments" (LSEQ-PR, page 97). The fact sheet's top holdings show gold and silver miners but no derivatives (LSEQ-FS, page 1).

7. Derivatives and Rule 18f-4

• Derivatives used. None identified as held. LSEQ "may also use derivatives as described in its principal investment strategy" (LSEQ-PR, page 140, "Derivative Instruments"). The strategy names "listed and over-the-counter options" (LSEQ-PR, page 95). Principal risks include Derivatives Risk and Commodity Risk (LSEQ-PR, page 97). The fact sheet notes that holdings "may exceed 100% due to derivatives" (LSEQ-FS, page 2, "Disclosures"), but this is generic wording.
• Short sales as leverage. "Short sales are considered speculative transactions and a form of leverage." (LSEQ-PR, page 96). The SAI doesn't say whether short sales count as derivatives transactions under Rule 18f-4.
• Limited derivatives user or full program. Not stated for LSEQ. The SAI says only that Rule 18f-4's VaR limits and program requirements "apply unless the Fund satisfies a "limited derivatives users" exception" (LSEQ-SAI, page 33, "Derivative Instruments"). No derivatives risk manager is named.
• VaR test and reference portfolio. Not stated. VaR (value at risk) estimates the most a fund could lose over a set period at a set confidence level.
• Commodity pool status. LSEQ is not on the list of funds for which the adviser is a registered commodity pool operator. For the other funds, the adviser "has filed a notice of eligibility with the National Futures Association to claim an exclusion from the definition of the term CPO" (LSEQ-SAI, page 48, "Commodity Pool Operator Status"). So LSEQ relies on that exclusion (my inference). CFTC Rule 4.5 is not named.

8. Costs

• Who pays what.
  • The fund pays the 1.20% unitary fee. It also pays costs the adviser excludes: 12b-1 payments (none currently), "the costs of borrowing, including interest and dividend expenses", taxes, acquired fund fees, brokerage commissions and other transaction costs, shareholder meeting costs, and litigation and extraordinary costs (LSEQ-PR, page 95, footnote 1).
  • Short costs "are not payable by the Advisor under the unitary fee arrangement" (LSEQ-PR, page 95, footnote 2).
  • The adviser pays the subadviser "out of its own assets" (LSEQ-PR, page 159, "The Advisor").
• Fees actually paid.
  • Advisory fee paid to Harbor: $241 thousand in fiscal 2025 and $186 thousand in fiscal 2024 (LSEQ-SAI, page 63, "Advisory Fees").
  • Subadvisory fee paid by Harbor to Disciplined Alpha: $431 thousand in fiscal 2025 and $178 thousand in fiscal 2024 (LSEQ-SAI, page 65, "Subadvisory Fees").
  • So in fiscal 2025 Harbor paid the subadviser about $190 thousand more than it collected (my arithmetic). The documents don't explain this.
• Prior year. For December 4, 2023 to October 31, 2024 the ratios were 1.98% total and 1.20% excluding dividend and interest expense, both annualized (LSEQ-PR, page 203). That puts short dividends plus interest at 0.78% (my arithmetic).
• Expense example. $235 for 1 year, $724 for 3 years, $1,240 for 5 years and $2,656 for 10 years per $10,000 (LSEQ-PR, page 95, "Expense Example").
• Brokerage commissions. $539 thousand in fiscal 2025 and $382 thousand in fiscal 2024 (LSEQ-SAI, page 99, "Broker Commissions"). The $241 thousand advisory fee at 1.20% implies average net assets of about $20.08 million in fiscal 2025 (my arithmetic). On that base, commissions were about 2.68% of average net assets (my arithmetic). They are outside the expense ratio.
• Portfolio turnover. 308% in fiscal 2025 and 194% for the 2024 period, unannualized (LSEQ-PR, page 203; LSEQ-PR, page 95, "Portfolio Turnover"). LSEQ is one of the funds that may "engage in, frequent trading" as part of its strategy, by exclusion from the trust's general statement (LSEQ-PR, page 153, "Portfolio Turnover").
• Gap between total expense ratio and management fee. 2.28% minus 1.20% is 1.08% (my arithmetic). It is entirely the combined short dividend and interest line. Adding commissions of about 2.68%, the all-in yearly cost in fiscal 2025 was about 4.96% of average net assets before market impact (my arithmetic).
• Rough financing cost per dollar shorted. If the short book averaged near the 64.5% seen on September 30, 2026, the 1.08% line equals about 1.68% of short value per year for dividends plus interest (my arithmetic). This is a weak estimate. It uses a different year's exposure, and the documents don't split dividends from interest.

9. Performance and risk

Fact sheet returns to September 30, 2026 (LSEQ-FS, page 1, "Fund Performance"). Periods before December 4, 2023 are the predecessor fund's.

• The 3-year figure sits under the "Total Returns" heading. The disclosure says only periods under one year are not annualized, so it is unclear whether 13.53% is cumulative or annualized.
• The fact sheet warns that some returns "were unusual" and should not be expected to continue (LSEQ-FS, page 1).
• Growth of $10,000 since inception to September 30, 2026: $20,094 for the fund at NAV versus $16,591 for the HFRX Equity Hedge Index (LSEQ-FS, page 1).
• Prospectus returns to December 31, 2025 (LSEQ-PR, page 99, "Average Annual Total Returns"):
  • Before taxes: 3.00% (1 year), 5.59% (5 years), 4.76% (10 years), 4.63% (since 01/01/2015).
  • After taxes on distributions: 2.28% (1 year).
  • After taxes on distributions and sale: 1.95% (1 year).
  • S&P 500: 17.88%, 14.42%, 14.82%, 13.53%.
  • HFRX Equity Hedge: 10.06%, 6.61%, 4.75%, 4.09%.
  • Pre-ETF performance "reflects all fees and expenses, including a performance fee" of the predecessor and is not adjusted for the ETF's expenses (LSEQ-PR, page 98, "Performance").
• Fiscal-year total returns at NAV. 2.72% for fiscal 2025 and 13.81% for December 4, 2023 to October 31, 2024, unannualized (LSEQ-PR, page 203).
• Calendar-year returns (LSEQ-PR, page 98, "Calendar Year Total Returns"; values read from the bar chart labels):

• Best quarter: 12.29% in Q4 2021. Worst quarter: -14.51% in Q1 2023 (LSEQ-PR, page 98).
• Risk statistics, 1-year, September 30, 2026 (LSEQ-FS, page 1, "Fund Characteristics"):
  • Against the HFRX Equity Hedge Index ("Portfolio vs Benchmark"): alpha 13.33, beta 0.92, R-squared 19.80.
  • Standard deviation 17.98 (portfolio, 1-year).
  • The fact sheet says beta is "a rolling three year, unless the Fund has a track record of less than three years, in which case it is a rolling one year" (LSEQ-FS, page 2, "Definitions"). The ETF had run less than three years at September 30, 2026, which fits the 1-year label (my inference).
  • No Sharpe ratio, drawdown, correlation to the S&P 500, or up and down capture is given.

10. History and structural changes

• Predecessor fund. Disciplined Alpha Onshore Fund LP, a Delaware limited partnership. It started January 1, 2015 and invested through a master fund with the same manager and policies (LSEQ-PR, page 98, "Performance"; LSEQ-FS, page 2, "Disclosures").
• Reorganization. On December 4, 2023 the ETF "acquired the assets and assumed the then existing known liabilities" of the predecessor and is its "performance successor" (LSEQ-FS, page 2, "Disclosures"). This is a private fund to ETF conversion. No document uses the term "351" for it. Section 351 appears only in the SAI's general creation-order rule (LSEQ-SAI, page 115, "Tax Information"). So whether it was a 351 conversion is not stated.
• Predecessor differences. The predecessor "was not a registered fund and so it was not subject to the same investment and tax restrictions as the Fund. If it had been, the Predecessor Fund's performance may have been lower." (LSEQ-PR, page 98).
• Name, ticker, adviser or trust changes. None for LSEQ in the documents. None of the nine supplements bound in front of the prospectus, or the four in front of the SAI, concerns LSEQ (LSEQ-PR, pages 1 to 9; LSEQ-SAI, pages 1 to 4).
• Document dates.
  • The prospectus and SAI are dated March 1, 2026. Their fee and turnover data are for the fiscal year ended October 31, 2025.
  • The fact sheet is as of September 30, 2026.
  • The fiscal year ended October 31, 2026, but no annual report was attached, so fiscal 2026 costs are not available.
• Conflicts and drafting points.
  • Inception: the fact sheet and prospectus give 1/1/2015, the predecessor's start. The ETF commenced on December 4, 2023 (LSEQ-PR, page 203).
  • 80% test wording differs between the fact sheet and the prospectus (see section 4).
  • The Commodity Risk text says LSEQ may concentrate in a commodity sector "in order to seek to track the Index" (LSEQ-PR, page 97). LSEQ is actively managed and tracks no index, so this looks like text carried over from another fund (my inference).
  • "New Fund Risk" is still listed although the ETF has run since December 2023 (LSEQ-PR, page 98).

11. Principal risks

From LSEQ-PR, pages 96 to 98, "Principal Risks". The first seven are in the order given; the rest are alphabetical.

• Large Cap Risk (page 96).
• Mid Cap Risk (page 96).
• Short Sales Risk (page 96). Flag: shorting and counterparty. Loss is "potentially unlimited". It names "the failure or inability of the broker-dealer through which the Fund made the short sale" as counterparty risk.
• Model Risk (page 96).
• Equity Risk (page 96).
• Market Risk (page 96).
• Risks Associated with Exchange-Traded Funds (pages 96 and 97):
  • Authorized Participant Concentration/Trading Risk.
  • Cash Transactions Risk. Flag: cash redemptions may force sales of longs and closing of shorts (my inference).
  • Premium/Discount Risk.
• Commodity Risk (page 97).
• Derivatives Risk (page 97). Flag: leverage. Derivatives "may create a risk of loss greater than the amount invested."
• Foreign Securities Risk (page 97).
• High Portfolio Turnover Risk (page 97).
• Industry Group Focus Risk (page 97).
• Issuer Risk (page 97).
• Large Shareholder Risk (page 97). Flag: two holders owned 83% of shares at January 31, 2026 (my arithmetic, from LSEQ-SAI, page 122). A large redemption could force a sharp cut in the leveraged book (my inference).
• Leveraging Risk (pages 97 and 98). Flag: leverage. It names "derivative instruments or reverse repurchase agreements" as sources of leverage, not short sales or margin.
• New Fund Risk (page 98).
• Precious Metals Investment Risk (page 98).
• Selection Risk (page 98).
• U.S. Government Securities Risk (page 98).

No principal risk covers prime broker insolvency, borrow recalls (a lender demanding its stock back), margin calls or rising borrow fees.

12. Relevance to our fund

• How close is its structure and leverage? Not close (my inference).
  • LSEQ is a net-long hedged equity fund (about 120/64, 55% net). We plan a 150/150 market neutral book.
  • LSEQ is on Harbor's own trust, not Tidal's.
  • Its book of 107 longs and 37 shorts is smaller on the short side than our 75 to 150 per side.
  • The match is the method: direct shorts through a prime broker, with long exposure above 100% of net assets and a bank custodian (State Street).
• What does it show about 3.0x gross in a 40 Act ETF? (my inference)
  • Little. At about 1.84x gross it fits under the Reg T ceiling of about 2.0x in fund_context.md.
  • The prospectus allows net exposure "up to 150% long" (LSEQ-PR, page 95). With the short book at 50% or more, that would need gross of 2.5x or more (my arithmetic, illustrative). But no gross cap, no margin type and no measured gross above 2.0x appear in the documents.
  • The SAI drafting is the useful part. The trust's non-fundamental policy bans margin purchases and short sales "(except in the case of Harbor Long-Short Equity ETF)" (LSEQ-SAI, page 52). A Tidal SAI for our fund would need the same carve-outs (my inference).
  • LSEQ adds no swaps, futures or box spreads. The documents permit reverse repos and line-of-credit borrowing for investment purposes, but don't say either is used.
• What does it show about financing, collateral, custody and costs? (my inference)
  • Custody: State Street is custodian, and shorts run through an unnamed prime broker. This fits Tidal's point that shorts are "custodied away" from the main custodian. The documents don't say where the collateral sits or under what custody rule.
  • Cost visibility: LSEQ reports short dividends and broker interest in its expense ratio, but as one number. It can't be split into the c, d and b terms of our direct-shorts formula ($150 × c + $50 × d + $150 × b). Short dividends inflate the 2.28% headline, as fund_context.md warns.
  • Trading cost matters as much as financing here. At 308% turnover, commissions were about 2.68% of average net assets in fiscal 2025, outside the expense ratio (my arithmetic). A 150/150 book with high turnover would face the same issue at larger scale.
  • Unitary fee economics: Harbor paid the subadviser more than it collected in fiscal 2025 ($431 thousand versus $241 thousand). A small long/short ETF under a unitary fee can lose money for its sponsor at this asset level.

13. Gaps and open questions

What the documents don't answer, for a 150/150 fund:

• The prime broker's name and the margin type (Reg T or portfolio margin).
• Where longs bought with short proceeds or margin debit are held (State Street or the prime broker), and under which custody arrangement (Rule 17f-1 or a control agreement).
• What collateral is posted to the broker, and whether long stocks are pledged.
• The split of the 1.08% line between short dividends and broker interest, and any borrow fees or rebates on short proceeds.
• Measured gross exposure over time, and the highest gross the regime model has run.
• Whether LSEQ is a limited derivatives user under Rule 18f-4, which VaR test it uses, and the reference portfolio.
• Whether LSEQ uses reverse repos or a line of credit in practice.
• Fiscal 2026 costs and turnover (annual report not attached).

Questions to ask:

• To Harbor or Disciplined Alpha: Who is the prime broker? Is the account Reg T or portfolio margin? Is it held under Rule 17f-1?
• To Harbor: How does the 1.08% split between short dividends, margin interest and borrow fees? What rebate is paid on short sale cash?
• To Harbor: What was the highest gross exposure since December 2023? Has net exposure ever approached the stated 150% long limit?
• To Harbor: Which Rule 18f-4 VaR test and reference index apply to LSEQ? Is it a limited derivatives user?
• To Harbor: Why did subadvisory fees ($431 thousand) exceed advisory fees ($241 thousand) in fiscal 2025? Is there a minimum fee or performance component?
• To Tidal: Will Tidal's SAI carry the same margin and short sale carve-outs that Harbor uses for LSEQ (LSEQ-SAI, page 52)?

Search terms tried for fields left "Not stated":

• Prime broker and margin type: prime broker, margin, Regulation T, portfolio margin, borrow, counterparty, pledge, segregat, earmark, tri-party, 17f-1, rebate.
• Leverage cost split: short sale, sold short, dividend, interest, borrowing, line of credit, reverse repurchase, swap, box spread.
• Rule 18f-4: 18f-4, value at risk, derivatives risk manager, limited derivatives user, leverage.
• Commodity pool: commodity pool, 4.5, futures, options.
• Securities lending: securities lending, lending agent.
• Service providers: custodian, transfer agent, administrator, administrative services, fund accounting, distributor, auditor, Ernst.
• History: predecessor, reorganiz, 351.

14. Documents used

Page numbering.

• LSEQ-FS: page 1 has no printed number. Pages 2 and 3 are printed "Page 2 of 3" and "Page 3 of 3", the same as the PDF.
• LSEQ-PR: PDF pages 1 to 9 are supplements, each with its own "Page 1 of 1" numbering. PDF page 10 is the cover, 11 is blank, and 12 is the table of contents. From PDF page 13 on, PDF page = printed page + 12. LSEQ's summary is PDF pages 95 to 99 (printed 83 to 87).
• LSEQ-SAI: PDF pages 1 to 4 are supplements. PDF page 5 is the cover and 6 the table of contents. From PDF page 7 on, PDF page = printed page + 6.
• Both the prospectus and the SAI cover 29 Harbor funds. Only LSEQ-specific or trust-wide passages were used.

15. Snapshot sources

• Ticker: LSEQ-FS, page 1, "Key Facts".
• Fund name: LSEQ-FS, page 1, header.
• As of date: "As of: 9/30/2026" (LSEQ-FS, page 1, header).
• Adviser: LSEQ-PR, page 99, "Portfolio Management" ("Investment Advisor Harbor Capital Advisors, Inc."); LSEQ-SAI, page 5, cover.
• Platform: (my inference). Harbor ETF Trust is Harbor's own trust; Harbor Capital Advisors "is the investment adviser to Harbor ETF Trust" (LSEQ-PR, page 159, "The Advisor"). Tidal is not named in any document.
• Exchange: LSEQ-PR, page 10, cover ("NYSE Arca, Inc."); LSEQ-SAI, page 5, cover.
• Inception: ETF "Commencement of Operations" on December 4, 2023 (LSEQ-PR, page 203, "Financial Highlights", footnote a). Predecessor start "Inception date: 1/1/2015" (LSEQ-FS, page 1, "Fund Performance").
• Net assets: "$15.99M" (LSEQ-FS, page 1, "Key Facts"), as of September 30, 2026.
• Strategy type: (my inference) from net exposure "ranging from 40% to 60% long" (LSEQ-PR, page 95, "Principal Investment Strategy"). Morningstar category "Long-Short Equity" (LSEQ-FS, page 1).
• Long %: 119.81%, sum of the five long market cap buckets, September 30, 2026 (my arithmetic, LSEQ-FS, page 1, "Market Capitalization").
• Short %: 64.47%, sum of the short market cap buckets, September 30, 2026 (my arithmetic, LSEQ-FS, page 1, "Market Capitalization").
• Gross: 119.81% + 64.47% = 184.28%, or 1.84x (my arithmetic).
• Above 2.0x: based on 1.84x (my arithmetic). No stated gross target or cap.
• Net: 119.81% - 64.47% = 55.34% (my arithmetic). Stated normal range 40% to 60% long (LSEQ-PR, page 95).
• Short method: "When the Fund shorts securities of a company, it borrows shares of that company which it then sells." (LSEQ-PR, page 96, "Principal Investment Strategy").
• Prime broker or counterparty: only "prime brokerage arrangements" (LSEQ-PR, page 95, "Fees and Expenses of the Fund", footnote 2). No firm named.
• Custodian: LSEQ-SAI, page 124, "Custodian and Transfer Agent".
• Management fee: LSEQ-PR, page 95, "Fees and Expenses of the Fund" ("Management Fees 1.20%"); LSEQ-PR, page 160, "Annual Advisory Fee Rates".
• Total expense ratio: LSEQ-PR, page 95 ("Total Annual Fund Operating Expenses 2.28%"); LSEQ-FS, page 1 ("Net Expense 2.28%", "Gross Expense 2.28%"). No waiver.
• Short costs in expense ratio: the fee table has a "Dividends and Interest on Short Sales" line of 1.08% inside the 2.28% total (LSEQ-PR, page 95, "Fees and Expenses of the Fund").
• 3-month return: -5.34% at NAV, 3 months to September 30, 2026 (LSEQ-FS, page 1, "Fund Performance", "Total Returns as of 9/30/2026").
• 1-year return: 22.13% at NAV, 1 year to September 30, 2026 (LSEQ-FS, page 1, "Fund Performance").
• Beta: "Beta (1-year)" 0.92 in the "Portfolio vs Benchmark" column (LSEQ-FS, page 1, "Fund Characteristics").
• Beta benchmark: the fact sheet "Benchmark" is "HFRX Equity Hedge Index" (LSEQ-FS, page 1, "Key Facts"), and beta is shown as "Portfolio vs Benchmark" (LSEQ-FS, page 1, "Fund Characteristics").
• Beta period: "Beta (1-year)" (LSEQ-FS, page 1). See the definition note in section 9 (LSEQ-FS, page 2, "Definitions").
• Leverage Method: "Interest expenses result from the Fund's use of prime brokerage arrangements to execute short sales." (LSEQ-PR, page 95, footnote 2) and "it borrows shares of that company which it then sells" (LSEQ-PR, page 96). The SAI exempts LSEQ from the ban on buying "securities on margin" (LSEQ-SAI, page 52), but no document says Reg T, Regulation T or portfolio margin.
• Leverage cost: the "Dividends and Interest on Short Sales" line of 1.08%, which "reflect interest expense and dividends paid on borrowed securities for the current fiscal year" (LSEQ-PR, page 95, footnote 2). Fiscal year ended October 31, 2025: 2.28% total less 1.20% "excluding dividend and interest expense" = 1.08% (my arithmetic, LSEQ-PR, page 203). The documents don't split interest from dividends.
• Short dividend expense: combined with interest in the 1.08% line, as above.
• Ranking properties (Rank to Score): from the ranking of the 27 LS peers prepared November 11, 2026, using only the project's fund profiles. Each of the seven criteria scores Yes = 1, Partly = 0.5, No or Not stated = 0. Funds sort first by Portfolio margin (YES, LIKELY, POSSIBLE, UNLIKELY, NO), then by Score, then Tidal funds first, then higher gross exposure (my inference).
• Rank: 11 of 27, as of November 11, 2026.
• Long/short: net exposure of 40% to 60% long normally (LSEQ-PR, page 95); about 119.8% long and 64.5% short on September 30, 2026 (LSEQ-FS, page 1; my arithmetic).
• Portfolio margin: POSSIBLE. The fund shorts through "prime brokerage arrangements" (LSEQ-PR, page 95, footnote 2), and the SAI exempts it from the trust's ban on buying "securities on margin" (LSEQ-SAI, page 52). No document says Reg T or portfolio margin.
• Cross-collateral: Not stated. What collateral is posted to the broker is not stated (see section 6).
• Outside Reg T: Not stated.
• Short costs (includes dividends): No. 1.08% for the fiscal year ended October 31, 2025 (LSEQ-PR, page 203; my arithmetic).
• Over 2.0x: No. 1.84x on September 30, 2026 (LSEQ-FS, page 1; my arithmetic).
• Tidal: No. Harbor ETF Trust is Harbor's own trust (LSEQ-PR, page 159).
• Score: 1 (my arithmetic).

16. Fund Documents

Fact Sheet

Prospectus

SAI